Overview
Brazil's food and beverages sector accounts for 10% of the country's GDP and is its largest exporter. In 2013, the revenues of the sector reached BRL 485bn, an 11% increase from 2012.
Currently, the food and beverages manufacturing industry is the second-largest segment of the manufacturing industry in terms of gross output, behind only the petrochemical industry. Underpinned by rising domestic and foreign demand, the sales in the sector are constantly growing despite the current slowdown of Brazil's economy.
There are about 32,000 companies operating in the food and beverages sector and they employ about 19% of the working population in the country.
Food industry
The food sector is among the most dynamic in the Brazilian economy. The country is home to the largest players in the global meat market and leading exporter of sugar, soybean and other raw materials for the food industry.
The growth of the sector is supported by the large and fast growing consumer market. In addition, some local companies have strongly expanded abroad by acquiring international brands. Almost 100% of the local demand is met by local companies or foreign entities operating in Brazil. The sector's imports are predominantly of some products in the premium segment and also raw materials like wheat and wheat flour, milk powder and cocoa. The food sector in Brazil is highly concentrated, less than 1% of the companies account for more than half of the production gross value.
Beverages
Brazil's beverages sector experienced strong growth in the past few years. The cumulative growth of physical production of beverages reached 50% between 2004 and 2013. Notably, the average annual growth rate of beverages production in the last decade stood at 4.2%, while the average annual growth rate of the country's GDP over the same period was 3.7%. The sector is dominated by the soft drinks and beer segments. Currently, Brazil is the third-largest producer and consumer of soft drinks and beer in the world. Interestingly, despite the almost non-existent imports of soft drinks and beer in Brazil, the segment's share in the country's overall imports is constantly growing due to the rise in imported raw materials, especially the imports of malt.